Insurance (Portfolio Insurance Companies) Regulations (2026 Revision)

Summary

This document is the 2026 Revision of the Insurance (Portfolio Insurance Companies) Regulations, made under the Cayman Islands Insurance Act (Law 32 of 2010). It is a consolidated, updated version of the original 2015 Regulations incorporating amendments made in 2024, and it governs how Portfolio Insurance Companies (PICs) - a special category of segregated/cell-type insurer linked to a controlling relevant (licensed) insurer - are registered, capitalised, and monitored by the Cayman Islands Monetary Authority (CIMA).

• Registration (Schedule 1): Sets out the registration application process and required forms.
• Margin of solvency: Establishes the method for calculating a PIC's margin of solvency and admissible/inadmissible assets by risk class (classes 1-8).
• Capital requirements (Schedule 2): Sets the minimum capital requirement (MCR) and prescribed capital requirement (PCR) that each PIC must maintain.
• Reporting (Schedule 3): Sets the annual return and financial reporting requirements.
• Certificate of registration (Schedule 4): Prescribes the form of certificate of registration issued by CIMA.
• Addresses what happens, and what CIMA may do, if a PIC's capital falls below the required thresholds.

The Regulations apply to portfolio insurance companies and their controlling relevant insurers operating in or from the Cayman Islands.

• Annual filings: PICs must submit annual regulatory filings (audited financial statements, annual declarations, actuarial valuations, and solvency certificates) within a set period after their financial year-end.
• Capital calculation: PICs must calculate their prescribed capital requirement at each filing date.
• Below prescribed threshold: If capital falls below the prescribed (but above minimum) threshold, PICs must engage with CIMA and present a remedial plan.
• Below minimum threshold: CIMA retains discretion to modify capital requirements or take regulatory action where a PIC's capital falls below the minimum requirement.

Key obligations

• An application for registration as a portfolio insurance company must be made using Form 1 of Schedule 1, as required under section 28B of the principal Act.
• Every portfolio insurance company (except as exempted) must, within six months of the end of its financial year, submit: audited financial statements per section 28E(1)(a), an annual declaration (Form 2, Schedule 1), an actuarial valuation of assets and liabilities certified by an Authority-approved actuary, a certificate of solvency prepared by an Authority-approved person, and any other information requested by the Authority under section 28E.
• A PIC that does not conduct long-term business, or conducts business of the type described in section 4(3)(c) of the principal Act, is exempt from the actuarial valuation and solvency certificate requirements.
• At each filing date, a PIC must calculate and record its prescribed capital requirement (PCR) using the form in Part 2 of Schedule 2.
• A PIC must maintain the minimum capital requirement (MCR) and prescribed capital requirement (PCR) as set out in Part 1 of Schedule 2, unless it has an Authority-approved internal capital model or a modified requirement set by the Authority.
• Where a PIC's capital falls below the prescribed capital requirement but remains above the minimum capital requirement, the PIC must meet with the Authority and present a remedial action plan.
• Where capital falls below the minimum capital requirement, the Authority may take any regulatory action it deems appropriate.
• A registered PIC must forthwith notify the Authority of any change in the information supplied in its registration application, as stated on the certificate of registration.
• The certificate of registration issued by the Authority must be in the form set out in Schedule 4 and printed on Authority-approved watermarked paper.

Applies to

portfolio insurance companies (PICs), controlling relevant insurers

Deadlines

• within six months of the end of its financial year: Deadline for a portfolio insurance company to submit audited financial statements, annual declaration, actuarial valuation, and certificate of solvency to CIMA.
• at each filing date: A portfolio insurance company must calculate and record its prescribed capital requirement (PCR) using the form in Part 2 of Schedule 2.

Related documents

• This document replaces Insurance (Portfolio Insurance Companies) (Amendment) Regulations, 2024 (SL 69 of 2024)
• This document replaces Insurance (Portfolio Insurance Companies) Regulations, 2015
• This document is made under Insurance Law, 2010 (Law 32 of 2010)